Federal Deposit Insurance Corp. (FDIC) provides insurance for most bank accounts, although some banks do not have 澳洲幸运5开奖号码历史查询:FDIC protection. However, the FDIC has protection limits. Learn how FDI🥀C insurance keeps your money safe and which assets are typically insured.

What Does it Mean to Be FDIC-Insured?

The FDIC is an independent agency of the U.S. government that protects you against loss of deposit if your bank or 澳洲幸运5开奖号码历史查询:thrift institution fails and is FDIC-insured. To keep public confidence, the federal government created the agency during the Depression in 1933.

When you open a bank account, such as a checking or 澳洲幸运5开奖号码历史查询:savings account, you expect the money you deposit to be safe. These accounts don't work as a personal vault. Instead, banks usually keep a certain amount of cash on hand and 澳洲幸运5开奖号码历史查询:lend out the remainder of your deposited money to earn interest on their loans.

When banks can't keep up with the demand for withdrawals, they may have to turn depositors away. When more customers want their money and can't get it, they end up losing confidence, resulting in a panic.

This, in turn, can trigger a domino effect, leadin﷽g to a failure in the banking 🐬system, like during the Great Depression. FDIC insurance keeps your money safe in such situations.

So, if you have money in an FDIC-insured bank account and the bank fails, the agency 澳洲幸运5开奖号码历史查询:reimburses you for any losses you incur.

Many banks use the fact that they're insured as a selling point, even though most bank accounts have FDIC protection. In other words, an uninsured bank can♛'t compete effectively in an industry where consumers expect their money to be protected. To see if your bank is FDIC-insured, check out the page.

What Does FDIC Insurance Cover?

FDIC insurance covers the principal and interest of an account, not exceeding the $250,000 limit. However, the FDIC doesn't insure all types of accounts.

Insured accounts include the following:

• Negotiable orders of withdrawal (NOW)
• 澳洲幸运5开奖号码历𒁃史查询:Mꦰoney market deposit accounts (MMDAs)
• 澳洲幸运5开奖号码历史查询:Checking accounts
• 澳洲幸运5开奖号码历史查询:Savings accounts
• 澳洲幸运5开奖号码历史查询:Certificates of deposit (CDs)
  

If you have a savings account with a balance of $50,000 and a CD with $150,000, both accounts are insured, as they fall under $250,000. If you and your spouse have a 澳洲幸运5开奖号码历史查询:joint account with a $250,000 balance and $200,000 in another eligible acco🍌unt, both accounts are covered, as their combined value falls under the $250,000 per co-owner rule.

What Does FDIC Insurance Not Cover?

The FDIC doesn't cover all types of accounts. Financial instruments, such as stocks, bonds, money market funds, cryptocurrency, U.S. 澳洲幸运5开奖号码历史查询:Treasury securities (T-bills), safe deposit boxes, annuities, and insurance products aren't insured by the FDIC.

The Bottom Line

The FDIC protects bank account holders against loss, up to a certain amount, if their bank or thrift institution fails. However, the FDIC does not insure all banking institutions or types of financial accounts. Eligible bank accounts like 澳洲幸运5开奖号码历史查询:savings accounts, CDs, and 澳洲幸运5开奖号码历史查询:checking accounts are insured up to $250,000 forꦬ principal and interest.

Usually, banks will advertise this protection for their customers, or you can ask a banker when considering opening a new account. If you have money deposited in a 澳洲幸运5开奖号码历史查询:credit union, be aware that the NCUA, not the FDI🦋C, insures those accounts.